Internet's first get-out-of-debt community - 145,000 members

Posted: Fri Sep 21, 2007 8:38 pm Subject: Sallie Mae private loan

I received a private loan through sallie mae in 2003 to attend a trade school. At that time I was looking forward to working in a new field. A year after that I became sick and discovered that I have MS. I am on permanent disability.

I have written sallie mae several times requesting some assistance in reducing my monthly payment which has gone up to $217.00 this year. Since it is capitalized interest I am screwed..as the balance never seems to go down.

My sister co-signed this student loan and therefore I do not want to stick her with this debt. So I struggle every month to make this payment. I only receive a $1005.00 in disability and have a car payment and utilities and so that only leaves me roughly $300.00 to live on.

I feel like I am drowning and have no idea what to do. From what I have read it is next to impossible to get out from underneath this private loan. I would appreciate any advice that anyone could give me on what I should do.

ladybug

Posted: Sat Sep 22, 2007 3:10 am Subject:

Unfortunately, this is the nature of private loans. Like regualar consumer loans, they do not have have to offer any payment reduction or any other type of grace. Loans cannot be discharged for disability nor can they be discharged in BK.
Have you tried calling them?? As a general rule, student loans do not negotiate thru the mail.

Posted: Sat Sep 22, 2007 10:43 am Subject:

ladybug,I am not real knowledgeable on student loans,but is there any way you could apply for a hardship/disability discharge of this debt.

Posted: Sat Sep 22, 2007 12:33 pm Subject:

Unfortunately there is no such thing as hardship or disability relief for private loans. That only happens on government insured loans.

Posted: Sat Sep 22, 2007 12:52 pm Subject:

Ok lady u know ur a very good friend and i love u to death so plz don't take this the wrong way cuz i'm just trying to help here! Is there anyway u cud get a lesser car with a lower payment and send that money to SallieMae to try and get this loan paid off? How much is the loan for? If I'm understanding ur numbers right, u get $1005 per month and spend 700 on car payment and utilities right? Like i said i know thru experience that i will never buy a car with a huge payment again!!! I learned that the hard way!! Paying month after month after month.... YUCK!
Hope u figure it out and u can get this Sallie Mae loan paid out soon!
Ang

Posted: Sat Sep 22, 2007 12:59 pm Subject:

Hey ladybug,

I am sorry to hear that you are struggling, but here is something that may help you out: I am not sure in what field you have worked before, but I was working in the aviation industry and there are special credit unions that allow you to join them even if you are not working in the aviatoin field anymore (like me). I am with American Airlines Credit Union, and even though my credit is poor, they are still lending me money @ 7.9% apr.... Do you think that your field of work will allow you to join such a union?

If you tell me your field I can look up on the Inernet and I will try to find one for you Smile

Posted: Sat Sep 22, 2007 7:11 pm Subject:

Hey stefan-No offense but not sure how taking out another loan is going to help here.

As soap mentioned, student loans are next to impossible to get out of, even after death ( i know that sounds bad but its true). I just transferrd out of the student lending division of the bank I work for and I would say check your promissary note for any other types of forbearance options.

Posted: Sat Sep 22, 2007 7:20 pm Subject: reply

Let me jump in here. Ladybug has stated that she is on permanent disability. She is not in a "field of work". She is on disability. So advising her to check into getting another loan through a credit union is not a good idea here. She has a fixed income. She does not work. Why would she go take out another loan? She can't make it as it is. Ladybuy, my friend, listen to volley. She works in the industry. If you have any questions, I'm sure she would welcome a pm from you! Very Happy

Posted: Sat Sep 22, 2007 8:33 pm Subject:

Well my car will be paid off in exactly 8 months, my car payment is only $96.00 a month, so when that is paid off then I will apply that money towards my loan, so in about 9 months I will be able to send them an extra $100.00. I guess if nothing else works, I will just suffer through it...it's unfortunate that I had to become disabled 2 years after this... Sad

ladybug

Posted: Sat Sep 22, 2007 8:38 pm Subject:

OH well hell, u can't beat a less than 100 dollar car payment per month, that's for sure!! And before u know it, it'll be paid off.... That's a huge plus for u lady! Very Happy

I'm so sorry for ur health issues lady. I think of u often and ur in my prayers daily!
Just keep after it and something good will happen for u soon cuz u are a sweetheart and deserve a break! Remember karma! Very Happy

Talk soon,
Ang

Posted: Sat Sep 22, 2007 8:59 pm Subject:

I know that when I start to feel sorry for myself there is always someone or something that comes along that is worse off then me. If I have to have MS I am glad that what I have is the relapsing/remitting kind.

I am currently in my second medical study so hopefully a cure can be found and why in the hell we get it (MS that is).

ladybug

Posted: Sat Sep 22, 2007 9:41 pm Subject: repoly

ladybug, you know we love you. If you need anything, let us know. Very Happy

Posted: Sun Sep 23, 2007 7:39 am Subject:

Posted: Sun Sep 23, 2007 9:16 pm Subject:

stefan-If ladybug wanted another loan, she is definitely smart enough to exhaust her options. Thanks for the offer.

Asking someone what industry they are or was in is somewhat intrusive unless they volunteer it...that is part of the beauty of the anonymity of this site.

Posted: Sun Sep 23, 2007 9:31 pm Subject: reply

She cant make it as it is because of her high payments. Because her interest is capitalized. If she takes out that loan and pays off the student loan all at once she will get rid of the capitalized loan

We do encourage members to give advice/opinions/etc. However, each member has their own individual situation which is unique. Please do not make assumptions as to the reason a member "can't make it as it is". There may be other reasons which are not posted. I understand anyone wanting to give good advice and try to help and this is welcomed. However, the member will read the replies and if the member believes this advice would help their situation, they would respond as such. In this case, apparently taking out another loan is not an option.

Posted: Mon Sep 24, 2007 4:46 am Subject:

Wow ok i know this is none of my business but i feel i must say my 2 cents, and that's all about it's worth! Very Happy

Sometimes online it's easy to take things the wrong way since u can't hear a person's tone and such.... I think Stefan is ONLY trying to help here! And by asking someone's profession is NOT that private in my opinion. I mean she didn't ask where she lives or her phone number! Also, she's right that this capitalized interest is killer and if it were possible to get out of it that wud be the best bet! I can't imagine how u ever get ahead by paying interest on interest! Which is exactly what' lady's doing! Now since i know lady personally which Stefan doesn't i know she is not willing or able to get another loan... that being said, let's try to get back on track here and try to figure out a way to help lady pay this loan off!
hope all of u have a good monday,
Very Happy

Ang

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